Option (option; Option contract, also known as option, is a derivative financial instrument based on futures. In essence, the option is to price the rights and obligations in the financial field separately, so that the transferee of the right can exercise his rights on whether to trade or not within a specified time, and the obligor must perform it. In the transaction of options, the party who buys options is called the buyer, and the party who sells options is called the seller. The buyer is the transferee of the right, and the seller is the obligor who must fulfill the buyer's right. Foreign exchange trading in international trade is to avoid risks! Because foreign trade companies use other countries' currencies in their foreign trade activities, they all need to reserve a certain amount of foreign currency. At the same time, due to the fluctuation of international currency exchange rate, they need to find ways to avoid the risk of currency depreciation caused by exchange rate changes! For example:

A Japanese foreign trade company signed an order with an American foreign trade company, stipulating that a Japanese foreign trade company would export a batch of goods to an American foreign trade company on March 20th110, and an American foreign trade company would pay 50 million yen to a Japanese foreign trade company. At this time, because the deadline has not yet arrived, the exchange rate of the US dollar against the Japanese yen is constantly changing. Once the dollar depreciates against the yen, American foreign trade companies will lose money! At this time, American foreign trade companies can do a forward foreign exchange operation, change US dollars into Japanese yen, and the contract time is 2011March 10. In this way, no matter how the exchange rate changes, American trading companies will not lose anything.